Vanguard S&P 500 ETF is trading 1.7% up today as investors react to a tentative 60-day U.S.–Iran peace agreement and the planned reopening of the Strait of Hormuz.
- The geopolitical breakthrough has significantly eased energy-supply and inflation risks, leading to a drop of over 4% in Brent crude prices.
- While lower oil prices are pressuring the energy sector, they are boosting rate-sensitive growth sectors like technology and communication services, which drive the broader index higher.